The company added that annual production records had been achieved for petroleum, copper cathode and iron-ore in the year to June 30.

Annual aluminium, copper and manganese ore production was down for the year to June 30. Southern Africa’s mandatory power cuts hit aluminium output; lower ore grade and reduced output from milling operations at Escondida, in Chile, lowered copper production; and the decrease in the production of manganese ore reflected production cuts in response to weak demand.

“The 2009 financial year proved to be very challenging,” the company, headed by South African CEO Marius Kloppers, said, adding that dramatic movements in inventory levels had been worsened by significant lower demand.

Destock and restock activities across the value chain continued to mask underlying demand trends.

“China’s inventory build is essentially complete, while we are now seeing evidence that restocking has commenced in North America, Europe and Japan,” BHP Billiton said, but added that latent current capacity was likely to lessen upward price pressure.

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